It seems to me that the plan is to replace in-house developed products and services with off the shelf products and services. If the product or service can be bought from an external vendor then they will negotiate to buy it at a lower price then what it takes Vz to make it in-house (which includes cost of a employee). This is how they will save $10B. Makes sense to me. They have already started by shifting people to Infosys.
This would be a huge cost savings - they don't need hardware or software guys, they don't need internal testing, they don't need internal services, they don't need to manage it, etc. Remove internal everything (related to a product) and replace with external everything where possible. (Another words, Why make pasta at home from scratch when you can buy pasta at the store with the same great taste and quality at a cheaper price.)